India's exports grew 26.8 per cent to $18.9 billion in November while imports increased 11.2 per cent to $27.8 billion, narrowing trade deficit to $8.9 billion in the month, Commerce Secretary Rahul Khullar said on Wednesday.
"Exports are doing pretty well. There is huge turnaround in exports of engineering products, especially automobiles. Gems and jewellery are also doing good," Khullar told reporters.
November trade data were provisional, Khullar said, adding that the $18.9 billion export data might be revised upwards in a few days.
Buoyed by a better than expected growth in the first eight months, the government was likely to revise its whole fiscal export target upward from $200 billion announced earlier.
"In the first eight months we have $140 billion. So clearly we are going to breach $200 billion. Now the question is by how much. I think it is going to be around $210 billion to $215 billion," said Khullar.
He said whole year trade deficit was likely to remain in the range of $120 billion to $135 billion.
"News on balance of trade is also very good. Given the current trend, I expect it will be around $120 billion. However, a lot depends on oil prices. If it climbs to $100 a barrel, our deficit will widen," Khullar said, adding that the trade deficit up to $135 billion would be manageable.
"Beyond $135 billion will be a matter of concern," he added.
Trade deficit has declined to $8.9 billion in November from $9.7 billion in October. India's trade deficit had widened to a 23-month high of $13.06 billion in August.